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Bridgewater's Disappointing Year

Jan 08, 2014

Jing Chen

One of the world’s largest hedge fund firms had an overwhelming year in 2013.

The New York Times reported that Connecticut-based Bridgewater Associates' Pure Alpha fund rose just 5.25% last year, while its All Weather fund ended the year down 3.9%-- while its hedge fund peers posted an average 9% gain in 2013.

Comparatively, the Pure Alpha fund an average 14.4% return for investors in each of the last five years, including 2013, while the All Weather fund returned an average of 12.4% over the same time period.

A favorite investment for many public pensions and other institutional investors because of its historically steady performance, Bridgewater’s disappointing return last year is a rarity.

With about $144 billion in assets under management, Bridgewater was founded in 1975 by Ray Dalio out of a two-bedroom New York City apartment.